Tag: corruption

Passengers on a recent Mango flight from Johannesburg to Cape Town were terrified when the aircraft suddenly nosedived, forcing the pilot to make an emergency landing in Johannesburg. A subsequent investigation into the incident has highlighted the extent of South African Airways’ problems.

  • A faulty part was fitted to the aircraft by SAA Technical
  • SAA admitted that it has been infiltrated by an international criminal syndicate
  • The syndicate has supplied the company with suspicious aircraft parts and looted “hundreds of millions of rands”
  • Defective parts cause incidents such as the nosedive of the Mango Boeing 737
  • Comair, which operates British Airways in South Africa, has ended its relationship with SAA Technical
  • Airlines have been grounded for such activities
  • The government has pumped almost R50-billion into the airline in the last decade

By Stephen Collinson for CNN

The Trump administration is frenetically throwing up road blocks in a belated grasp for a strategy to slow a Democratic impeachment machine the President is now branding a “coup.”

But the intrigue that has pitched Donald Trump’s presidency into its deepest-ever crisis took a new twist after the independent inspector general from the State Department, Steve Linick, asked for an “urgent” briefing with congressional committees on Wednesday about documents related to the Ukraine scandal. A congressional aide described the request as “highly unusual and cryptically worded.”

The dramatic development came after Secretary of State Mike Pompeo attempted to prevent witnesses linked to his department from appearing on Capitol Hill in the coming days. The move appeared to be an attempt to buy time to come up with a long term blueprint to save Trump by turning the politics of impeachment.

Pompeo’s initiative was at least more substantive than Trump’s tweeting and cable news appearances from conspiracy-theory touting supporters that constituted his early defense.

But the sharp Democratic response to Pompeo’s claims of bullying against potential witnesses, and a key source’s decision to show up anyway, suggested that the added gravity of a formal impeachment process could shift Washington’s balance of power.

It is only a week since House Speaker Nancy Pelosi formally announced an impeachment probe into evidence that Trump pressured Ukraine to dig up dirt on his potential 2020 rival Joe Biden. But the drama has turned Washington on its head and comprehensively altered the dynamics of the Trump presidency.
Trump appears under siege from multiple directions. Late Tuesday, for example, The New York Times cited administration officials as saying the President previously suggested fortifying his southern border wall with a trench filled with alligators and snakes and wanted to shoot undocumented migrants in the legs.

Fast-moving developments
The latest fast-moving developments show how Democrats are using their constitutional authority to quickly build a framework for their investigation.

“This is an extraordinary crime. I suspect this is the greatest crime a president has committed in my lifetime,” Rep. Mike Quigley, a Democratic member of the House Intelligence Committee told CNN’s John Berman Tuesday.
The pace is sure to heat up Wednesday with Pelosi and House Intelligence Chairman Adam Schiff and the President himself expected to hold news conferences.

Trump offered Americans a glimpse into the state of his mind at the end of a tumultuous day with a unfounded tweet that warned illegal attempts were underway to steal the votes and constitutional rights of his supporters.
“As I learn more and more each day, I am coming to the conclusion that what is taking place is not an impeachment, it is a COUP,” Trump declared.

Aside from the inflammatory social media posts, the White House clearly understands that its best interests lie in stalling the inquiry for as long as possible, likely with legal challenges challenging subpoenas to give its surrogates time to fog the case and to build public frustration with impeachment.
A day after being subpoenaed for documents related to his role in consultations with Ukraine, Rudy Giuliani, the President’s personal lawyer, engaged his own counsel, and in an historical echo chose former Watergate prosecutor Jon Sale.

The former New York mayor has not said if he will comply with the subpoena. But he could be an early test case of the administration’s intentions to gum up the impeachment works with contentious legal challenges that could last for months.
“I really have to study it. I can’t shoot from the hip,” Sale told CNN’s Michael Warren.
“Every time I turn around, Rudy’s on another TV show,” Sale continued. “He and I could have a conversation, and then I turn on the television and he could be doing something else.”

‘Intimidation and bullying’
Pompeo, one of the President’s most valued aides, launched the most serious attempt yet by the administration to disrupt the impeachment investigation.
In a letter to House Foreign Relations Committee Chairman Eliot Engel, he said the proposed timetable for witnesses to testify in the coming days was too compressed.
In a tweet, the nation’s top diplomat warned the request could be “understood only as an attempt to intimidate, bully, & treat improperly the distinguished professionals of the Department of State, including several career (foreign service officers).”

The Democratic response was swift, reflecting an apparent belief among party leaders that they have the upper hand over the administration in the early stage of the probe.
In a letter to Pompeo, who is in Europe, the chairmen of the House Intelligence, Foreign Affairs and Oversight committees said that holding back testimony “is illegal and will constitute evidence of obstruction of the impeachment inquiry.”

In effect, the chairmen were warning that an attempt to frustrate the impeachment inquiry could eventually itself turn into a rationale for impeachment.
The administration has been largely successful in derailing previous Democratic efforts to oversee the White House by launching legal challenges and sweeping executive privilege claims. But impeachment already looks like a different animal.

The lawmakers also accused Pompeo of intimidating State Department witnesses to protect himself and the Ambassador Kurt Volker, the former special envoy to Ukraine who had been scheduled for a deposition on Thursday, has made clear he still plans to show up, despite Pompeo’s letter.

The other officials schedules to be deposed by the House Foreign Affairs Committee include former US Ambassador to Kiev Marie “Masha” Yovanovitch, Counselor T. Ulrich Brechbuhl and Ambassador Gordon Sondland — who were mentioned in the whistleblower complaint that helped trigger the impeachment push.

A fifth official — Deputy Assistant Secretary George Kent — has overseen policy on Ukraine at the State Department since September 2018 and was previously the deputy chief of mission at the US Embassy in Ukraine.
Yovanovitch, who was previously scheduled to appear Wednesday, will now do so on October 11 with the agreement of both the Committees and counsel, a congressional aide told CNN.

Democrat calls for Trump to be jailed
The President stayed out of sight at the White House on Tuesday. But he was as active as ever on Twitter, seeking to discredit the whistleblower much as he attempted to impugn the credibility of special counsel Robert Mueller.
“If the so-called ‘Whistleblower’ has all second hand information, and almost everything he has said about my ‘perfect’ call with the Ukrainian President is wrong (much to the embarrassment of Pelosi & Schiff), why aren’t we entitled to interview & learn everything about…the Whistleblower,” Trump wrote, decrying another “Democratic hoax.”

In fact, the whistleblower’s complaint was judged urgent and credible by the intelligence community’s independent, Trump-appointed inspector general for the intelligence community Michael Atkinson.
And on Monday, Atkinson issued a highly unusual statement rejecting the central plank of Trump’s argument — that the whistleblower based his complaint on hearsay.

While events seemed to be running largely in the favor of Democrats on Tuesday, there was another sign of a breach in discipline that could harm their efforts to avoid the political pitfalls of impeachment.

“I’m calling on the GOP to stop Trump’s filthy talk of whistleblowers being spies & using mob language implying they should be killed,” California Rep. Maxine Waters tweeted. “Impeachment is not good enough for Trump. He needs to be imprisoned & placed in solitary confinement.”

The tweet was a far cry from Pelosi’s request for her party to approach the impeachment process in a non-partisan and “prayerful” manner.

CNN’s Kylie Atwood and Manu Raju contributed to this story.

Zuma’s second term cost SA R470bn

President Jacob Zuma’s second term cost SA’s economy R470-billion, Nedbank chief economist Dennis Dykes told Business Day on Tuesday.

The former president is said to have cost SA the following during his second term:

  • R470bn of GDP stemming from corruption, maladministration and misguided policies
  • R140bn in estimated lost tax revenue
  • A subsequent reduction in the budget deficit in 2019 to about 2.4% of GDP (currently at a projected 4%)
  • A reduction in government debt to R250bn: less than 49% of GDP versus 56% of GDP
  • The South African economy could have been up to 30% (R1-trillion) larger
  • The economy could have created 2.5-million more jobs
  • The government could have collected R1-trillion more in tax
  • The government could have minimised Eskom’s debt, which is R419bn by comparison.

How the ANC broke Eskom

Source: MyBroadband

Eskom was once so successful that it was supplying more than half the electricity in Africa.

However, years of corruption, incompetence and political meddling has brought Eskom to its knees, and it is now begging for bailouts to stay afloat.

The company’s growing debt burden, which already exceeds R400-billion and can grow to R600-billion in the next three years, means it is technically bankrupt.

So bad is the situation that former Finance Minister Nhlanhla Nene said Eskom is the single biggest risk to South Africa’s economy.

The image below provides an overview of how Eskom changed over the last 10 years:

Image credit: MyBroadband

Did the banks collude with the Guptas?

Source: The Citizen 

The EFF has criticised South Africa’s major banks, calling them opportunistic and hypocritical “in their testimony given to the state capture inquiry”.

Standard Bank’s retired head of legal testified at the inquiry on Monday giving reasons that led the bank deciding to close the business accounts of the controversial Gupta family.

Former FirstRand Group – which First National Bank (FNB) is a division of – chief executive officer (CEO) Johan Burger is testifying at the commission today.

“These banks were very happy to do business with the Guptas until the unceremonious December 2015 removal of Nhlanhla Nene as finance minister when South African stocks were severely devalued,” the EFF said in a statement.

The red berets added that by the time of Nene’s axing, the Guptas and former president Jacob Zuma – who are commonly referred to as the Zuptas – were already carrying out corrupt activities “facilitated by the very same banks”.

The EFF said: “It is impossible that the banks only started to notice the suspicious transactions of the Guptas and their companies in 2016 as they now want us to believe.

“The truth is that these banks colluded in the looting of the country for as long as it was feeding into their profit maximisation motives and greed. These are the only driving forces behind the commercial banks. For them, it’s profit before people and the country.”

The party said it hopes the chair of the commission Deputy Chief Justice Raymond Zondo would not be fooled by the testimony of the banks.

“We call on the South African Reserve Bank (Sarb) and the Financial Intelligence Centre to launch a separate probe into the complicity of South African banks in the Gupta state capture and why they turned a blind eye towards an obviously suspicious transactions before 2016 and to hold them accountable for their part in state capture,” the EFF said.

The party added that if the Sarb fails to institute such a probe the party would take it upon itself to initiate a parliamentary probe into the matter.

Meanwhile, Burger testified on Tuesday that FNB had closed the accounts of the Guptas due to associated reputational and business risks.

By Roy Cokayne for IOL

The South African Bureau of Standards (SABS) has been placed under administration.

This is after Trade and Industry Minister Rob Davies last month removed the entire SABS board because he had lost faith in its ability to effectively manage the bureau.

In May this year, Davies confirmed that the bureau was bleeding customers and potential revenue and in March this year he instructed its management to urgently oversee a detailed process to develop a turnaround strategy.

Davies on Friday announced the appointment of three SABS co-administrators, SABS group operating officer Jodi Scholtz, the deputy director-general of the Industrial Development Division at the Department of Trade and Industry (dti) Garth Strachan, and the chief director of technical infrastructure institutions at the dti, Tshenge Demana.

He said the co-administrators were charged with producing a diagnostic report and turnaround action plan.

They hade been appointed for the period from July 2 this year until January 30 next year and in terms of the provisions of the Public Finance Management Act, they had been given all powers and duties necessary or incidental for the proper functioning of the SABS. Sidwell Medupe, a spokesperson for the dti, on Friday confirmed that SABS chief executive Boni Mehlomakulu, who as chief executive was a member of the bureau’s board, had been dismissed as a board member, along with the other board members. Medupe also confirmed that Mehlomakulu now reported to and took instructions from the co-administrators.

The SABS last year reported a R44.3 million loss for its 2016/17 financial year.

The SABS has been in the spotlight since it emerged that it irregularly certified substandard coal by Guptalinked mines to facilitate the suspension imposed by Eskom on another supplier to pave the way for the Gupta-owned Tegeta contract to go ahead.

However, the problems at the SABS go much deeper than that and it has received widespread criticism in the past few years from many industries about the level of service these industries were receiving from the bureau.

Business Report reported in January last year that South Africa’s coatings industry claimed the SABS’s paint testing laboratories appeared to be non-operational.

The Master Chemical Blenders Association, which collectively represents more than 50 companies, last year told Business Report that their members were unable to get their compliance certificates from the SABS, despite interacting directly with Mehlomakulu and that the SABS did not have testing capability and that many were possibly no longer compliant.

The SA National Accreditation System (Sanas), which is responsible for accrediting industry bodies and laboratories that conduct testing and is recognised through legislation as the only national body responsible for carrying out accreditation, suspended the certification programmes of the SABS, but subsequently lifted this suspension in March 2016, claiming the suspension was of an administrative nature.

Complaints Many other industries have complained to Business Report about the level of service provided by the SABS. Davies last month confirmed that he had received many complaints from both big and small business, including complaints from black industrial players, that the government was working hard to expand, about the lack of service from the SABS.

Davies confirmed in response to a parliamentary question in May that the SABS had lost 1 052 customers since its 2015/16 financial year, including 401 customers since April this year, resulting in a loss of revenue to the bureau of almost R50m in this period.

In addition, the SABS had to refund 41 customers a total of R1.03m in this period.

Davies said the peak in customer losses was in the SABS’s 2016/17 financial year, due to customers cancelling their permits and certificates with the SABS.

The reasons for the cancellations included the suspension of SABS certification programmes by Sanas; customers moving to competitors; and expired certificates and permits.

By Siviwe Feketha for IOL; HuffPost 

In an unbelievable development, the ANC says it is “shocked” by the scale of corruption in government. In a document called “ANC briefing notes: key ANC politicies and government programmes”, reportedly prepared for the 2019 election, the party notes that there has been an increase in corruption despite the creation of crime-fighting institutions.

According to The Star, the document says, “The [past] year has revealed many new cases of corruption, and like all South Africans, we are shocked by the scale of corruption and the allegations of state capture, which we are determined to root out.”

South Africans, however, were not so shocked. Or, rather, they were shocked, just not for the same reasons as the ANC.

The ANC is reportedly “shocked” by the scale of corruption in the state, and has conceded that despite setting up mechanisms to combat graft, “powerful individuals” had managed to loot government coffers.
The governing party has vowed to take a tougher stance on corruption as part of its election campaign, with measures including subjecting public servants and senior politicians to lifestyle audits.

This is contained in a document titled “ANC briefing notes: key ANC policies and government programmes”, prepared for the elections in 2019.

The party held an elections workshop at the weekend in Irene, outside Pretoria. The workshop was tasked with crafting the party’s election manifesto, which will be used to drum up support for the general elections when the party faces its biggest contest since 1994, with good governance and the land issue set to be the main themes for their campaign.

In the document, the ANC admitted that in spite of creating institutions such as the Hawks and the Special Investigating Unit, there has been an increase in corruption cases.

“In spite of these efforts, powerful individuals have managed to loot government resources. This goes against every value and principle the ANC fought for.

The ANC said it was determined to root out corruption because it undermined service delivery.

“We will use Parliament, commissions, investigators and the courts to get to the bottom of the problem and deal with the offenders. As the ANC, we will take strong action against any of our leaders guilty of corruption.

“It is unacceptable that parts of the state have been used to serve personal interests,” the party stated.

Power utility Eskom, rail company Transnet, arms manufacturer Denel and the Passenger Rail Agency of SA (Prasa) are among a number of state-owned companies that fell prey to the looting spree.

The party is now pushing for the strengthening of the Special Investigation Unit to boost the investigation of corruption in the public service.

“The corruption and state capture inquiries in Parliament in 2017 and 2018 addressed misspending and looting at state-owned companies and departments. In the first few months of 2018, the boards and top management were replaced at Eskom, Transnet, SAA and Prasa to start the clean up.

“Many of the offenders will be prosecuted. Ministers responsible for departments involved were also replaced,” the party noted.

“There are court cases, disciplinary processes or investigations into the conduct of many of those who were meant to protect us from corruption – among them senior prosecutors, police and investigators, Sars, intelligence agencies and politicians,” the ANC said.

As part of its vision for 2030, the ANC aims to improve the capacity of senior managers in government through assessment and ongoing training. It will also subject senior public servants to lifestyle audits.

The party said it was not for sale, and that those who donate to it should not expect tenders in return.

Delivering his keynote address at the workshop, President Cyril Ramaphosa said South Africans were not despondent, as they have seen the swift action taken by the government since he took over.

“They see the work we are doing to end state capture and corruption, and to restore our state-owned enterprise to financial and operational health. Many of our people have become actively involved in the debate on land reform and the measures taken to urgently accelerate land redistribution and drive the agricultural revolution they want to see,” he said.

On land reform, the ANC has admitted that its government had failed to effectively deal with the land question, since it took over the reins of government in 1994, adding that expropriation without compensation would be used to help address dispossession of black people.

The party said instead of paying for land – which was expensive – the state had to help new farmers with financial support, as they often failed and sold their land back to the whites.

“Since 1994 we have implemented a policy of land claims and land reform to reverse the apartheid injustice. There has been very slow progress and the patterns of the past have not really changed. Land has been expensive to buy and we spent more than R50billion on land reform.

“New farmers who have benefited from land claims or land reform find it difficult to farm profitably without access to water rights, loans and technical support,” the party said.

The party has, however, rejected the EFF’s proposition that all land be nationalised, including current land occupations across the country which the red berets have endorsed.

“The ANC wants change but we want most of our land to belong to the people, not the state. We believe in a mix of private land ownership and communal or state ownership, where it makes more sense to go that route,” the ANC added.

It warned that land allocation would soon be dominated by crime syndicates, if illegal land invasions were allowed to continue.

 

By Herman Mashaba for News24

ANC politicians that once ruled the City of Johannesburg have to count among the greatest illusionists of modern times.

This is because they successfully managed to fool millions of residents in the city into believing that, despite clear evidence witnessed daily of below par service delivery, the ANC in Johannesburg was somehow better than their counterparts around the country.

People were duped into the belief that the City worked better than others, even if it was far from perfect.

Why not, right?

After all, ratings agencies, other government agencies and the commentariat also bought into the idea.

Who can really blame residents of the city, and everyone else for that matter, when R300m was being spent in a single year on self-promoting marketing?

What was Parks Tau and company doing spending the sort of money usually spent by JSE-listed blue chip companies on marketing and advertising?

The sad thing is that this was all public money from which the same public derived little or no benefit.

You must remember the volume of billboards across the city depicting perfect services. You must surely remember the radio advertisements – it was actually a feat to miss them. You must remember the full page spreads in the papers.

All of this depicting the Utopian ‘World Class African City’ which was markedly different from the lived experience of the residents of our city.

The leadership of Parks Tau and the ANC was obsessed with this manufactured image, mostly to fulfil their status in the many international bodies where they spent their time.

Tau now travels the world as President of the United Cities and Local Government; no doubt a consolation prize for the good job he did in pulling the wool over the eyes of even the international community.

However, upon entering office, we started to gain an understanding of the full magnitude of the historical failures that lay behind the billboards, radio adverts and newspaper spreads.

We began to understand that the previous ANC regime was all style over substance. They proved that not all that glitters is gold.

Since walking into office, it has become imperative that we must work together with our residents in turning the city around. Part of this, requires the common understanding of the scale of the issues we are required to overcome.

It also requires an appreciation that residents will not always be bombarded with self-praising advertisements and that this does not mean that the DA-led government is not working.

It’s precisely because we are working that you do not always see us as much as you would like.

If we do not share this understanding, we will fail to partner as residents, business and communities to turn Johannesburg into a city of golden opportunities.

Meanwhile, a R12bn backlog in our roads has arisen from years of under-investment in our road network. Between 2013 and 2017, 3964 km of the road network (32%) fell into the condition categories poor and very poor.

A R56bn backlog in our storm water drainage exacerbates the roads problem. Water running down the roads, with nowhere to go, damages the road structure and increases potholes.

Anyone who has driven since the recent heavy rains two weeks ago will know exactly what I am alluding to. It is estimated that the city has more than 100 000 reported potholes in the road network.

Our electrical infrastructure is no better.

Over 27% of our bulk transformers now operate beyond their useful lifespan, built between 1927 and 1970.

In the instance of the inner city, it is powered by a sub-station that is over 70 years old and only one man alive today knows how to service its parts. Our electrical infrastructure backlog sits at a staggering R65bn.

Our water network can be likened to that cartoon character with their fingers and toes plugging the leaks of a ship. The 2016/17 data, which is two years old, shows that the water network inherited suffered from 45 000 leaks per year. This in a situation where we know water will be a challenge in the future.

Our housing backlog stands officially at 152 000 people on our lists, and a demand for 300 000 City produced housing opportunities.

Incidentally, the R17bn of fraud and corruption under investigation would have been enough to build houses for all of these people.

The unofficial backlog, including those in the ‘missing-middle’ of the housing market, is much, much larger. It manifests in the legacy of landlessness, illegal land occupation and frustration in our communities.

This is something I do not understand, despite wracking my brain over the issue for the last 18 months.

How could a city have been run down to this extent, allowed to deteriorate, when the link between infrastructure and economic growth is so widely accepted around the world?

We have over 900 000 unemployed people living in Johannesburg. These people were failed by successive ANC governments which failed to look to the long-term future of those they claimed to be serving and the many more that stand to join them unless something drastic is done.

I do not raise these issues to settle down into a morbid state of depression.

Our plans that we are launching are designed to institute long-term investment into these infrastructure priorities. We will achieve a level of investment into critical infrastructure which will work towards turning the picture around, and not just plugging the leaks, so to speak.

This is why I say that this is the greatest lie hidden from the residents of Johannesburg.

They were never told about the trade-offs that were made which produced these kind of backlogs. In all of those rosy public consultation meetings, our residents weren’t told government would trade future jobs in exchange for fanciful projects.

Our residents were told that international reputation and prestige would come before houses, roads, electricity and water. Our residents were not told any of these things.

The road we will begin travelling down as a City, is going to transform ours into a city of golden opportunities; a city where infrastructure works, the economy is growing and more people are being employed.

What remains critical in this process is that we embark on this journey together, knowing we have been misled, that we have a mountain to climb, but that government has the will to do it for the first time.

– Mashaba is executive mayor of the City of Johannesburg

Former President Jacob Zuma spent R15.3-million in his battle to avoid prosecution – all funded by the taxpayer.

President Cyril Ramaphosa disclosed this information to the Democratic Alliance on Tuesday‚ in a bid to settle legal action bought by the party over Zuma’s refusal to disclose his legal fees in the so-called Spy Tapes case.

The State Attorney indicated that Ramaphosa intends to disclose this information in Parliament on Wednesday‚ in response to questions from EFF leader Julius Malema.

Malema also wants to know “on what legal provision(s) or policy did the State rely when using state resources to fund the former President’s legal costs?”

Zuma steadfastly avoided answering DA leader Mmusi Maimane’s questions about how much his so-called Stalingrad campaign has cost taxpayers.

And that may be because he has agreed to pay back the money if he’s convicted.

Ramaphosa’s spokesperson Tyrone Seale last week told Financial Mail that the state would continue to fund Zuma’s legal fees if he went on trial for corruption‚ on the basis of an undertaking that was concluded between Zuma and then president Thabo Mbeki in 2006.

“The former President signed an undertaking to refund the state if he is found to have acted in his personal capacity and own interest in the commission of offences with which he was charged.”

It remains unclear whether these costs will include the money spent by Zuma in avoiding prosecution.

Maimane told TimesLIVE on Tuesday evening that the DA would ensure the money was paid back.

“We want to claim it back and we want to ensure that Zuma is personally liable. We will do an analysis of how the determination went,” he said.

By Karyn Maughan for Times Live

Is this loadshedding, revisted?

Eskom has been dogged by allegations of corruption and mismanagement, and this is showing in its expected financial results over the short and medium term. In addition, two of Eskom’s suppliers of coal – namely, two Gupta mines – have stopped operations due to an inability to pay staff.

As the embattled parastatal’s bills mount, questions surround whether or not there will be enough coal to keep power on this winter.

Eskom’s problems far worse than expected

The Rapport reported that Eskom expects a loss of R8.1-billion in the short term, which is set to balloon to R26,5-billion in the medium term.

These projected losses are the highest a state-owned enterprise has ever experienced in South Africa.

The National Treasury described Eskom’s financial problems as the single biggest risk to the South African economy and public finances.

This echoed the views of finance minister Malusi Gigaba, who said in January that Eskom’s financial woes could collapse the economy.

“There would be no currency, and no economy for the country if Eskom went belly-up,” said Gigaba.

To address the mismanagement at Eskom, Gigaba said in his recent budget speech that the government has strengthened Eskom’s board and management with “highly-capable, ethical, and credible leadership”.

Further allegations of mismanagement
In related news, the Sunday Times reported that former Eskom executive Matshela Koko’s wife has received millions of rand from the power utility.

“Documents in the possession of state capture investigators suggest the money flowed to companies where Koko’s wife, Mosima, is a director,” said the Sunday Times.

The report stated that the money was “channelled through Eskom service provider Impulse International, where Mosima’s 27-year-old daughter, Koketso Choma, was a non-executive director”.

In March last year, the Sunday Times reported that Koko’s stepdaughter received contracts for her company worth R1 billion from Eskom.

The report stated that Choma was appointed as a director at Impulse International in April 2016, after which it received eight contracts from the division of Eskom which Koko headed up.

Third Gupta-owned mine fails to pay workers’ salaries

An employee at Shiva Uranium mine‚ a Gupta-owned company based in Klerksdorp‚ North-West‚ says they have been left in the lurch after the company failed to pay them their salaries last week.

“We have not been paid February salaries. We were told that we would be paid on the 28th. This is very frustrating as most of us live far from work and are struggling to get money for transport‚” said the employee‚ who asked not to be named.

She said the company told them on Friday that the payments were delayed because it does not have a bank. “They also told us that they have an international bank and the funds have to be converted from dollars into rands and that the process takes long.”

Koornfontein coal mine is the second Gupta-affiliated mine not to pay salaries to its workers.

They were also told that the delay was due to Eskom not paying the company.

The country’s commercial banks have cut ties with Gupta-owned companies – citing reputational risk – while the only bank which services the companies‚ Bank of Baroda‚ is to exit South Africa at the end of March.

“We know there is trouble brewing there. They are just not telling us the truth.”

She said most workers have since Friday taken leave because they either do not have money to take public transport or put fuel in their cars.

“I do not know what I would have done had it not been for my partner‚ who has helped out with the kids’ school fees and other household expenses‚” the woman said.

She said the company has denied that it is under business rescue as the workers have heard from media reports.

“We have asked them if they are under distress and they said no. They don’t want us to take action against them and have threatened us with our jobs‚” she said.

Shiva Uranium is the third Gupta-owned company to not pay its employees. Optimum and Koornfontein coal mines have also failed to pay workers their salaries this month.

Workers at Optimum downed tools on Wednesday last week‚ saying they wanted to know whether the mine would be sold following reports that the mine’s owners‚ the Gupta family‚ could no longer be found.

Koornfontein supplies coal to Komati power station‚ Optimum supplies coal to Hendrina power station and Brakfontein supplies coal to Majuba power station.

https://mybroadband.co.za
By NOMAHLUBI JORDAAN for https://www.timeslive.co.za

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